30% - pwc · group tier 1 850 1,649 2,934 3,153 group tier 2 477 866 1,276 1,428 group tier 3 325...

0%

5%

10%

15%

20%

25%

30%

35%

40%

Global rewardissues

Cost of living/salarybudgets

Managementinformation/

analytics

Reward in emergingterritories

Millennials/generational issues

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Bonusarrangements

Long-termincentive

design andparticipation

Overarchingstrategicreview

Benefits (e.g.flexible

benefits)

Pensionarrangements

andalternatives

Employeeshare

schemes

Other

Base salary Total cash Total directremuneration

Total remuneration

Group Tier 1 850 1,649 2,934 3,153

Group Tier 2 477 866 1,276 1,428

Group Tier 3 325 515 804 863

Group Tier 4 193 277 338 378

Group Tier 5 138 181 218 247

Group Tier 6 123 180 208 238

Division Tier 1a 440 813 1,301 1,529

Division Tier 1b 390 616 951 1,015

Division Tier 1c 242 372 472 503

Division Tier 1d 151 215 243 252

Division Tier 2 194 263 314 345

Division Tier 3 140 182 204 224

Division Tier 4 116 137 141 152

Division Tier 5 76 91 92 96

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Tier 1a Tier 1b Tier 1c Tier 1d Tier 2 Tier 3 Tier 4 Tier 5

£'000s

Base salary Total cash Total direct remuneration Total remuneration

Group roles Divisional roles

Short term Long termFixed Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Tier 1

Tier 3

Tier 4

Tier 5

Tier 6

Tier 2

0%80%60%40%0% 20% 20% 40% 60% 80% 100100%

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Short term Long termFixed Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Fixed

Variable

Tier 1a

Tier 1c

Tier 1d

Tier 5

Tier 4

Tier 2

Tier 3

Tier 1b

0%80%60%40%0% 20% 20% 40% 60% 80% 100100%

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Target

Stretch

Actual (2014) Forecast (2015)Group Tier 1 2.7% 3.0%

Group Tier 2 2.8% 3.0%





Division Tier 1a 2.7% 3.0%

Division Tier 1b 3.0% 3.0%

Division Tier 1c 3.0% 3.0%

Division Tier 1d 3.0% 3.0%

Division Tier 2 2.9% 3.0%



Division Tier 5 3.0% -

Actual (2014)

Technology 5.0%

Oil & Gas 3.8%

Telecommunications 3.5%

Consumer Goods 3.1%

Financials 3.0%

Basic Materials 3.0%

Industrials 3.0%

Healthcare 2.8%

Consumer Services 2.8%

Utilities 2.7%

Actual bonuses paid in 2014 Target bonus

Value

(£’000)

Change from previous year*

(% increase)

Proportion of total package

(% total remuneration)

Group Tier 1 978 3.6% 25.7%

Group Tier 2 472 2.9% 25.9%

Group Tier 3 233 8.8% 23.1%

Group Tier 4 97 13.0% 21.0%

Group Tier 5 47 8.5% 16.6%

Group Tier 6 41 26.8% 23.7%

Division Tier 1a 464 12.5% 25.0%

Division Tier 1b 321 20.9% 23.5%

Division Tier 1c 193 19.2% 22.3%

Division Tier 1d 84 13.0% 20.4%

Division Tier 2 92 -1.4% 20.9%

Division Tier 3 69 2.2% 19.0%



Group Tier 1 Group Tier 2 Group Tier 3 Group Tier 4 Group Tier 5 Group Tier 6

Divisional Tier 3 Divisional Tier 4Divisional Tier 1a Divisional Tier 1b Divisional Tier 1c Divisional Tier 1d Divisional Tier 2

0% 20% 40% 60% 80% 100% 120% 140%

Tier 6*

Tier 5

Tier 4

Tier 3

Tier 2

Tier 1

2011 2012 2013 2014

0% 20% 40% 60% 80% 100% 120% 140%

Tier 4*

Tier 3

Tier 2

Tier 1d

Tier 1c

Tier 1b

Tier 1a

2011 2012 2013 2014

0%

2%

4%

6%

8%

10%

12%

14%

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 1a Tier 1b Tier 1c Tier 1d Tier 2 Tier 3 Tier 4*

2011 2012 2013 2014


90% 75% 65% 40% 30% 25%

180%

150%

120%

80%

50% 50%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6

% salary

Target Maximum

75% 65% 40% 35% 40% 30% 25% 15%

150%

125%

80%

50%

80%

60%

30%

30%

0%

20%

40%

60%

80%

100%

120%

140%

160%

Tier 1b Tier 1b Tier 1c Tier 1d Tier 2 Tier 3 Tier 4 Tier 5

% salary

Target Maximum

Group profit Cashflow Revenue

Business

unit profit EBIT EPS ROCE

60% 36% 18% 12% 12% 12% 5%

Personal

Strategic

objectives

Health

& safety

Customer

satisfaction

Operational

measures

Risk

management

Employee

engagement

69% 18% 18% 15% 10% 7% 6%

Environment &

CSR

Production /

Productivity Project delivery

Corporate

sustainability

Market share /

Brand

Shareholder

measures

4% 4% 3% 3% 2% 2%

0%

5%

10%

15%

20%

25%

30%

35%

Financial only Non-financial only Financial & individual Financial & non-financial Finanial, non-financial &individual

Financial & individual

Financial & non-financial

Finanial, non-financial & individual

0% 20% 40% 60% 80% 100%

Financial Non-financial Individual

Eligibility

(% roles)

Type of DAB

Compulsory onlydeferral(% roles)

Voluntary onlydeferral(% roles)

Compulsory andvoluntary deferral

(% roles)

Group Tier 1 71% 86% 3% 11%

Group Tier 2 68% 87% 2% 11%

Group Tier 3 59% 86% 9% 6%

Group Tier 4 37% 81% 15% 3%

Group Tier 5 30% 73% 24% 3%

Group Tier 6 30% 99% 1% 0%

Division Tier 1a 70% 83% 0% 17%

Division Tier 1b 61% 85% 6% 9%

Division Tier 1c 56% 88% 10% 2%

Division Tier 1d 43% 89% 6% 5%

Division Tier 2 31% 87% 6% 7%




Compulsorydeferral

(% bonus)

Maximum voluntarydeferral

(% bonus)

Compulsory and voluntary deferral

Compulsory deferral

(% bonus)

Maximum voluntarydeferral (% bonus)

Group Tier 1 50% 75% 25% 25%

Group Tier 2 50% 100% 25% 17%

Group Tier 3 50% 50% 25% 25%

Group Tier 4 50% 50% 30% 20%

Group Tier 5 50% 50% - -

Group Tier 6 50% 50% - -

Division Tier 1a 50% - 25% 25%

Division Tier 1b 50% 100% 25% 20%



Division Tier 2 33% 33% 30% 20%

Division Tier 3 33% 50% 30% 20%

Division Tier 4 33% - - -

Division Tier 5 - - - -

0%

10%

20%

30%

40%

50%

60%

70%

80%

No LTI DMA only PSP only Options only Other LTIOnly

DMA & PSP DAB &Options

PSP &Options

LTI & OtherLTI

DAB/PSP/Options/Other LTI

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6

1 plan

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

No LTI DMA only PSP only Options only Other LTIOnly

DMA & PSP DAB &Options

PSP &Options

LTI & OtherLTI

DAB/PSP/Options/Other LTI

Tier 1a Tier 1b Tier 1c Tier 1d Tier 2 Tier 3 Tier 4 Tier 5

1 plan

Expected value

(£’000)

Expected value

(% salary)

Proportion of package

(% total remuneration)

Group Tier 1 1,209 150% 39%

Group Tier 2 514 115% 35%

Group Tier 3 255 75% 31%

Group Tier 4 79 42% 20%

Group Tier 5 39 27% 15%

Group Tier 6 34 28% 13%

Division Tier 1a 578 110% 35%

Division Tier 1b 306 75% 32%

Division Tier 1c 108 45% 21%

Division Tier 1d 29 18% 11%

Division Tier 2 73 36% 18%




Eligibility

(% roles)

Face value Expected value

Policy award

(% salary)

Maximum award

(% salary)

Actual award

(% salary)

Policy award

(% salary)

Actual award

(% salary)

Group Tier 1 86% 200% 250% 200% 133% 121%

Group Tier 2 78% 162% 200% 175% 109% 105%

Group Tier 3 78% 120% 180% 128% 84% 89%

Group Tier 4 64% 50% 80% 54% 45% 36%

Group Tier 5 54% 35% 45% 35% 21% 21%

Group Tier 6 49% 20% 20% 20% 12% 12%

Division Tier 1a 80% 150% 200% 151% 98% 90%

Division Tier 1b 79% 125% 150% 121% 76% 77%

Division Tier 1c 64% 80% 90% 81% 54% 52%

Division Tier 1d 47% 40% 50% 41% 24% 26%

Division Tier 2 55% 50% 70% 50% 42% 30%

Division Tier 3 56% 35% 45% 35% 21% 21%

Division Tier 4 19% 20% 20% 20% 19% 12%

Division Tier 5 0% - - - - -

0% 10% 20% 30% 40% 50% 60% 70% 80%

EP

EBIT

ROIC

None

PBT

ROCE

Cashflow

Non-financial

Other financial

EPS

TSR

0%

5%

10%

15%

20%

25%

30%

TSR EPS TSR &EPS

TSR &Other

EPS &Other

TSR, EPS& Other

Other

Eligibility(% roles)

% plans

Shareoptions

Restrictedawards

Co-investment

Cash plan VCP/VSP Other

Group Tier 1 19% 50% 22% 22% 0% 6% 6%

Group Tier 2 13% 32% 28% 32% 0% 4% 8%

Group Tier 3 24% 29% 35% 15% 17% 5% 6%

Group Tier 4 23% 24% 36% 8% 32% 0% 6%

Group Tier 5 21% 8% 40% 1% 50% 0% 5%

Group Tier 6 36% 2% 0% 0% 9% 0% 89%

Division Tier 1a 10% 33% 0% 67% 0% 0% 0%

Division Tier 1b 21% 31% 8% 19% 33% 0% 14%

Division Tier 1c 16% 56% 12% 37% 35% 0% 2%

Division Tier 1d 22% 73% 0% 17% 28% 0% 0%

Division Tier 2 23% 49% 18% 24% 23% 0% 10%

Division Tier 3 16% 36% 10% 5% 67% 0% 3%

Division Tier 4 46% 93% 0% 0% 2% 0% 7%

Division Tier 5 38% 100% 0% 0% 0% 0% 0%


Total salary Capped salary

% plans Employercontribution

(% salary)

% plans Employercontribution

(% salary)

Group Tier 1 35% 87% 25% 13% 5%

Group Tier 2 44% 83% 22% 17% 6%

Group Tier 3 62% 89% 18% 11% 4%

Group Tier 4 70% 83% 14% 17% 5%

Group Tier 5 77% 97% 13% 3% 13%

Group Tier 6 56% 100% 12% 0% -

Division Tier 1a 37% 84% 23% 16% 6%

Division Tier 1b 54% 84% 16% 16% 4%

Division Tier 1c 58% 91% 10% 9% 6%

Division Tier 1d 65% 100% 7% 0% -

Division Tier 2 48% 92% 10% 8% 12%

Division Tier 3 60% 98% 8% 2% 15%

Division Tier 4 76% 100% 6% 0% -

Division Tier 5 99% 100% 6% 0% -


Accrual rate(1/x)

Final salary(% plans)

CARE(% plans)

Capped(% plans)

Group Tier 1 15% 50 75% 25% 7%

Group Tier 2 11% 50 63% 37% 4%

Group Tier 3 11% 55 79% 21% 2%

Group Tier 4 20% 60 66% 34% 5%

Group Tier 5 17% 60 56% 44% 9%

Group Tier 6 36% 60 56% 44% 32%

Division Tier 1a 18% 45 44% 56% 10%

Division Tier 1b 17% 60 82% 18% 4%

Division Tier 1c 17% 60 53% 47% 5%

Division Tier 1d 22% 60 67% 33% 12%

Division Tier 2 27% 60 44% 56% 13%

Division Tier 3 36% 60 40% 60% 22%

Division Tier 4 18% 60 58% 42% 5%

Division Tier 5 1% - - - -

Eligibility Main benefit Additional benefit Typical employercontribution

(% roles) (% plans) (% plans) (% salary)

Group Tier 1 50% 85% 15% 30%

Group Tier 2 50% 82% 18% 25%

Group Tier 3 23% 78% 22% 25%

Group Tier 4 13% 38% 62% 19%

Group Tier 5 9% 57% 43% 10%

Group Tier 6 6% 100% 0% -

Division Tier 1a 58% 71% 29% 25%

Division Tier 1b 20% 86% 14% 25%



Division Tier 2 18% 81% 19% 20%

Division Tier 3 10% 80% 20% 15%

Division Tier 4 1% 100% 0% -

Division Tier 5 0% - - -

Benefits in kind Annual car cash allowance Typical car list priceGroup Tier 1 22 17 75

Group Tier 2 18 16 62




Group Tier 6 9 8 -

Division Tier 1a 19 16 -

Division Tier 1b 14 13 46

Division Tier 1c 12 12 39

Division Tier 1d 8 8 38

Division Tier 2 10 8 39

Division Tier 3 8 8 35

Division Tier 4 8 7 -

Division Tier 5 6 5 -

Shareholding requirement(% roles)

Level of shareholding requirement(% salary)

Group Tier 1 90% 200%




Group Tier 5 7% 50%

Group Tier 6 0% -

Division Tier 1a 89% 150%

Division Tier 1b 60% 100%

Division Tier 1c 31% 90%

Division Tier 1d 36% 50%

Division Tier 2 47% 50%



Division Tier 5 0% -

0%

10%

20%

30%

40%

50%

60%

70%

a. Purchase withown funds

b. Retained LTIproceeds

c. Unvesteddeferred shares

a + b a + c b + c a + b + c

% roles

Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 1a Tier 1b Tier 1c Tier 1d Tier 2 Tier 3


Reward Data Team Reward Partners

This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You

should not act upon the information contained in this publication without obtaining specific professional advice. No representation or

warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent

permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or

duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this

publication or for any decision based on it.

© 2014 PricewaterhouseCoopers LLP. All rights reserved. In this document, 'PwC' refers to the UK member firm, and may sometimes refer

to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.

30% - pwc · group tier 1 850 1,649 2,934 3,153 group tier 2 477 866 1,276 1,428 group tier 3 325...

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